ITC Share Price Today: Stock Rises 0.71% Despite 18% Q2 Profit Drop; Brokerages Cut Targets

ITC shares traded slightly higher on Tuesday, November 3, a day after the FMCG major reported a sharp fall in Q2 FY27 profit, as investors looked past the cigarette tax pressure. At the time of writing , the stock was at Rs. 268.30, up Rs. 1.90 or 0.71% from Monday's close of Rs. 266.40. ITC share today opened at Rs. 269.05, hit a high of Rs270 apiece on the NSE.

ITC is down about 35.86% over the past year. The 52-week low is Rs. 252.80, which brings the stock about 6% above its yearly bottom.

ITC Q2 Results Recap

ITC's consolidated profit for the September quarter fell 18.45% to Rs. 4,229.33 crore, against Rs. 5,186.55 crore a year earlier. The company said that the decline to higher expenses and raw material inflation linked to the Middle East war. On a standalone basis, net profit dropped 20.07% YoY to Rs. 4,137 crore.

ITC said the EBITDA margin expanded 50 bps YoY despite inflationary pressures, and that all non-cigarette segments saw robust growth. The weak profit was also not a surprise. Ahead of the results, Motilal Oswal had modelled a 28% YoY decline in cigarette EBIT, with margins contracting because price hikes were insufficient.

Total segment results stood at Rs.5,156.55 crore, against Rs. 6,320.72 crore a year ago, with the cigarette segment's lower results the main drag. CLSA said standalone revenue grew 3% YoY in the quarter, while EBITDA fell 17% after an unprecedented increase in cigarette taxes. The paperboards, paper and packaging segment did better, with revenue rising to Rs. 3,015.85 crore from Rs. 2,219.92 crore.

ITC Stock brokerages Review

Brokerages are mixed, with several trimming targets. Morgan Stanley cut its target to Rs. 312 from Rs. 340 and kept Equal Weight. UBS kept Buy but lowered its target to Rs. 345 from Rs. 350, while Jefferies has Buy with a Rs. 350 target. JPMorgan stayed Neutral at Rs. 310, Macquarie stayed Neutral at Rs. 300, and CLSA raised its target to Rs. 390 from Rs.388.
Goldman Sachs said the quarter was mostly in line with estimates, with non-cigarette businesses accelerating.

The recovery now depends on cigarette pricing. JPMorgan expects portfolio restructuring and staggered price increases to gradually narrow the decline in cigarette EBIT, with further hikes in the RSFT category helping stabilize it by Q4.

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